BSE to suspend trading in Lanco Infratech from Sep 14

New Delhi: Leading stock exchange BSE Thursday said trading in the equity shares of Lanco Infratech will be suspended from September 14, following commencement of liquidation proceedings.

The move comes after the Hyderabad bench of National Company Law Tribunal (NCLT), on August 27, ordered the liquidation of the company, and appointed resolution professional Savan Godiavala as the liquidator.

The bench ordered the liquidation of the company after the committee of creditors rejected the revised resolution plan submitted by Thriveni Earthmovers, a Tamil Nadu-based infra and mining firm.

"Hence, to avoid market complications, trading in the equity shares of Lanco Infratech Ltd will be suspended with effect from September 14, 2018," BSE said in a circular.

The Reserve Bank had in June 2017 directed IDBI Bank, lead lender of Lanco Infratech, to initiate insolvency proceedings for the company under the Insolvency and Bankruptcy Code (IBC).

The company, among 12 firms identified by the RBI with high debt for proceedings under IBC, owes over Rs 44,000 crore to the IDBI Bank-led lenders consortium.